Small and Medium Enterprises (SMEs) are fundamental to Mexico’s economy, representing over 70% of formal employment. Despite their importance, many SMEs, particularly in traditional industries such as leather-footwear, struggle to adopt digital technologies due to outdated infrastructure, limited resources, and cultural resistance to change. The COVID-19 pandemic intensified these challenges, underscoring the need for digital transformation to ensure competitiveness and sustainability.
This study explores how SMEs in Guanajuato’s leather-footwear sector can leverage digital innovation and human capital to overcome transformation barriers, enhance competitiveness, and align with sustainability goals. It examines the intersection between technology, knowledge management, and organizational culture in the context of the Fourth Industrial Revolution. A qualitative, multi-case methodology was employed, using semi-structured interviews with managers from 13 SMEs. These interviews explored four key dimensions: technological infrastructure, digital culture, challenges to adoption, and future strategies. Triangulation with academic literature ensured analytical rigor and contextual relevance.
Findings reveal that only 15% of the companies have sufficient technological infrastructure to support comprehensive digital transformation, while 70% possess only basic tools such as computers and internet access—often underutilized. A significant 85% of managers cited lack of employee training as a major obstacle. Nonetheless, companies with a strong culture of learning and openness to collaboration showed higher adaptability and up to 20% increases in operational efficiency. The pandemic also acted as a catalyst, pushing many firms toward digitalization, although often reactively.
A conceptual model was developed integrating the four dimensions of transformation, offering a framework for SMEs to navigate digital change. The study further proposes knowledge management strategies including training programs, the integration of digital tools, and collaboration with startups and government agencies. These were identified by 60% of interviewees as key enablers of sustainable innovation.
This research contributes to academic understanding of digital transformation in traditional sectors and provides actionable insights for entrepreneurs and policymakers. It aligns with IFKAD’s vision of integrating human expertise and digital innovation to foster socially responsible businesses. By focusing on knowledge as a strategic asset, the study highlights the importance of human capital in driving innovation, sustainability, and long-term resilience in SMEs.